VAT Introduction Raises Rental Parking Costs

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VAT Introduction Raises Rental Parking Costs
Photo: Janerik Henriksson/TT

The Tax Authority has decided that VAT shall be introduced on parking spaces that a tenant rents from their landlord. According to the decision, 25 percent VAT shall be added to the rent, reports Hem och Hyra.

The decision, which applies from and with 1 April next year, may affect hundreds of thousands of tenants according to the newspaper.

The change means that property owners must start paying value-added tax on parking rentals – a cost that in most cases probably ends up with the tenants.

Some property owners we have spoken to think it will be too expensive for their tenants. They expect that a lot of them will cancel their parking space, says Ulrika Hansson, tax lawyer at Property Owners Sweden.

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By TTEnglish edition by Sweden Herald, adapted for our readers

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